<p>Technology giant Google is to pay 130 million pounds in back taxes to Britain following a government inquiry into its tax arrangements, a company spokeswoman said.<br /><br /></p>.<p>It follows a six-year probe by Her Majesty's Revenue and Customs in response to controversy over low taxes paid by multinational corporations which operate in Britain but have headquarters elsewhere.<br /><br />"We have agreed with HMRC a new approach for our UK taxes and will pay 130 million pounds, covering taxes since 2005," a Google spokeswoman said.<br /><br />"The way multinational companies are taxed has been debated for many years and the international tax system is changing as a result. This settlement reflects that shift."<br /><br />In future, Google will pay taxes in Britain according to revenue from advertisers based in Britain, something that "reflects the size and scope of our UK business", the spokeswoman said.<br /><br />The BBC reported that Google would now register a greater proportion of its sales activity in Britain rather than Ireland, where its European headquarters is based and which has a lower rate of corporation tax.<br /><br />An HMRC spokesman welcomed the agreement.<br /><br />"The successful conclusion of HMRC inquiries has secured a substantial result, which means that Google will pay the full tax due in law on profits that belong in the UK," the spokesman said.<br /><br />"Multinational companies must pay the tax that is due and we do not accept less."Britain's finance minister George Osborne has vowed to close tax loopholes and introduce a so-called "Google tax" -- the diverted profits tax -- to stop firms moving profits abroad.<br /><br />"Good to see Google paying more tax on past profits. We want successful businesses in UK -- but they should pay their taxes," the chancellor of the exchequer said.<br /><br />"Google tax bill is a victory for the action we've taken. I introduced diverted profits tax. We now expect to see other firms pay their share."<br /><br />The opposition Labour Party's finance spokesman John McDonnell said Google's deal was "derisory".<br /><br />"This is relatively trivial in comparison with what should have been paid," he told BBC radio.<br /><br />Meg Hillier, who chairs parliament's public accounts scrutiny committee, said international companies had been "running rings around tax officials".<br /><br />She said HMRC was "effectively admitting it pulled in too little tax from Google for nine out of 10 years".<br /><br />Google is among several top technology firms under pressure over complex tax arrangements. </p>
<p>Technology giant Google is to pay 130 million pounds in back taxes to Britain following a government inquiry into its tax arrangements, a company spokeswoman said.<br /><br /></p>.<p>It follows a six-year probe by Her Majesty's Revenue and Customs in response to controversy over low taxes paid by multinational corporations which operate in Britain but have headquarters elsewhere.<br /><br />"We have agreed with HMRC a new approach for our UK taxes and will pay 130 million pounds, covering taxes since 2005," a Google spokeswoman said.<br /><br />"The way multinational companies are taxed has been debated for many years and the international tax system is changing as a result. This settlement reflects that shift."<br /><br />In future, Google will pay taxes in Britain according to revenue from advertisers based in Britain, something that "reflects the size and scope of our UK business", the spokeswoman said.<br /><br />The BBC reported that Google would now register a greater proportion of its sales activity in Britain rather than Ireland, where its European headquarters is based and which has a lower rate of corporation tax.<br /><br />An HMRC spokesman welcomed the agreement.<br /><br />"The successful conclusion of HMRC inquiries has secured a substantial result, which means that Google will pay the full tax due in law on profits that belong in the UK," the spokesman said.<br /><br />"Multinational companies must pay the tax that is due and we do not accept less."Britain's finance minister George Osborne has vowed to close tax loopholes and introduce a so-called "Google tax" -- the diverted profits tax -- to stop firms moving profits abroad.<br /><br />"Good to see Google paying more tax on past profits. We want successful businesses in UK -- but they should pay their taxes," the chancellor of the exchequer said.<br /><br />"Google tax bill is a victory for the action we've taken. I introduced diverted profits tax. We now expect to see other firms pay their share."<br /><br />The opposition Labour Party's finance spokesman John McDonnell said Google's deal was "derisory".<br /><br />"This is relatively trivial in comparison with what should have been paid," he told BBC radio.<br /><br />Meg Hillier, who chairs parliament's public accounts scrutiny committee, said international companies had been "running rings around tax officials".<br /><br />She said HMRC was "effectively admitting it pulled in too little tax from Google for nine out of 10 years".<br /><br />Google is among several top technology firms under pressure over complex tax arrangements. </p>